Tameh Czech: Financial Turmoil Threatens Liberty Ostrava

Liberty Steel
Liberty SteelImage Source: Liberty Steel

Synopsis:

Tameh Czech, the sole power supplier for Liberty Ostrava, faces shutdown due to Liberty's non-payment, causing a severe financial crisis. Liberty owes Tameh 2 billion koruna ($81.8 million), impacting its ability to buy coal. Tameh, 50% owned by ArcelorMittal, plans to shut down, holding Liberty accountable for its actions. Liberty, disappointed by the threat, offers coal during ongoing negotiations. The dispute unfolds amid broader financial challenges in the steel industry.

Article:

In a concerning turn of events, Tameh Czech, the exclusive power supplier for Liberty Ostrava, teeters on the brink of shutdown. A letter obtained by Argus reveals that Tameh, facing financial strain, attributes its imminent closure to Liberty's failure to pay, leaving them unable to procure essential coal.

Tameh claims a substantial debt of 2 billion koruna ($81.8 million) from Liberty Ostrava, with additional outstanding invoices exceeding Kc1.2 billion. The dire financial situation, exacerbated by Liberty's non-payment since June, compels Tameh to take drastic measures, including the shutdown of its plant.

The letter emphasizes the catastrophic impact of Liberty's non-payment, depleting Tameh's reserves and hindering any further coal purchases. In response, a spokesperson for Liberty Ostrava expresses disappointment at the unilateral threat and underscores their willingness to provide coal during ongoing negotiations.

The origins of the dispute trace back to Liberty's acquisition of Ostrava from ArcelorMittal, which included Tameh. However, the deal involving Tameh did not materialize. Currently, Tameh is 50% owned by ArcelorMittal, which is pursuing Liberty for a €140 million payment related to the broader acquisition.

Under the Tameh-Ostrava contract, a flat fee for energy supply was established. Liberty has previously voiced concerns about the high prices charged by Tameh, leading to government support to mitigate these costs.

Conclusion:

The financial turmoil between Liberty Ostrava and its power supplier, Tameh Czech, adds uncertainty to the steel industry landscape. As both entities grapple with the repercussions of the dispute, the imminent shutdown of Tameh underscores the broader challenges facing the steel sector. Resolving the payment dispute and finding common ground in negotiations is crucial to ensuring stability and continuity in the industry.

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